New forecasts from Cornwall Insight‘s Power Curve Report suggest that electricity generator prices in the UK will remain elevated until the end of the decade.
Electricity generators now receive a minimum of £51 per kilowatt (kW) annually, substantially rising from the previous rates of £18kW.
The report attributes this to ageing power plants and the expensive construction of new generation sources.
These factors are expected to impact consumers through higher electricity bills.
The UK capacity market, aimed at ensuring a reliable electricity supply, faces challenges as existing plants decline in reliability, necessitating more expensive replacements.
Despite government signals for building new gas-fired power stations, concrete plans are yet to be disclosed, with the announcement of an election making tangible action on these power stations unlikely in the near future.
